Pfizer, Ranbaxy push BSE HC Index higher

MUMBAI: Investors in Ranbaxy Laboratories could be in for a windfall if reports of Pfizer making a bid for non-promoter stake are to be believed.

A national daily on Friday reported that Pfizer may bid for 65 per cent non-promoter stake in Ranbaxy.

Shareholders could hold on to their shares before tendering them in Daiichi Sankyo's open offer, as Pfizer would have to make a bid higher than Rs 737 per share made by Daiichi, fueling a share price spiral.

"The reports are speculative in nature and nothing can be said as of now. If Pfizer acquires controlling stake it will have dual advantage. Firstly, patent litigations that Ranbaxy has against it will be taken care of and secondly, it will get access to one of the largest generic company with low cost manufacturing facilities," said an analyst from a local brokerage firm.

Shares of both Pfizer and Ranbaxy reacted positively to the reports. Ranbaxy was up 4.56 per cent at Rs 568.30 and Pfizer surged 6.28 per cent to Rs 629.

The BSE Healthcare Index was up 1.08 per cent at 4,489.11, outperforming the benchmark Sensex, which was down 0.30 per cent.

The analyst added that given the nature of the report, it was not possible to gauge what price Pfizer would make the offer, if at all it does.

Promoters of the Ranbaxy recently sold their entire stake of 34.8 per cent to Japan's Daiichi at Rs 737 per share. Daiichi will be making an open offer to the shareholders to acquire another 20 per cent stake.

As per the BSE website, institutions hold 41.28 per cent in Ranbaxy while non-institutions and individuals hold 21.24 per cent stake.